China and Fiji have signed off on a 120 million US dollar soft loan to seal one of the main roads on Vanua Levu.
The loan from the Export-Import Bank of China will improve the route linking the island's largest town of Labasa with the ferry connection point to Fiji's other main island Viti Levu.
Fiji's interim government says the Dreketi-Nabouwalu highway had been neglected by previous governments and the resealing would benefit thousands of people and boost the economy.
China Railway First Group is involved in the construction.
The work is expected to take two and a half years.